42 slides from Irb Infrastructure Developers's investor presentation, September 2019
Slide 1: Corporate Presentation September 2019
Corporate Presentation September 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by IRB Infrastructure Developers Limited (the “Company”) solely for your information and for your use and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm
Slide 3: Contents
Contents Sr. No Particulars Page No. 1 IRB-GIC deal 4 2 Q2FY20 Results 8 3 IRB Toll Road Portfolio and Performance 15 4 IRB Construction Vertical 22 5 Corporate Overview 30 3
Slide 4: IRB-GIC Deal
IRB-GIC Deal 4
Slide 5: IRB Structure – Pre and Post GIC Deal
IRB Structure –Pre and Post GIC Deal Pre-Deal Post-Deal IRB IRB GIC 51% 49% 100% InvIT Asset 1 100% EPC 100% 100% 100% Asset 1 EPC 100% Asset 10 Asset 2 100% Airport 100% 100% 100% . Asset 2 Asset 11 Airport . . 100% . . . Real Estate . . 100% . . . Real Estate . . . 100% 16% 100% 100% 16% Asset 15
Slide 6: Proposed Structure
Project considered for IRB – GIC Proposed Structure Project Length Current Status and No. Name of the Project (in Lane Kms) Highlights Karnataka 758 1 Goa Kundapur 758 Under construction Maharashtra 1,151 2 Solapur Yedeshi 395 PCOD achieved 3 Yedeshi Aurangabad 756 PCOD achieved Haryana 665 4 Kaitha
Slide 7: Transaction Benefits
Transaction Benefits IRB and GIC have in principal agreed to explore future opportunities in the Roads & Highways sector together INCREASED ABILITY TO TAKE ON MORE AND SCOPE TO IMPROVE CREDIT RATING REDUCED NET DEBT TO EQUITY FROM REDUCED NET DEBT TO EBITDA FROM LARGER PROJECTS FROM A+ 2.1:1 TO 1.6:
Slide 8: Q2FY20 Results
Q2FY20 Results 8
Slide 9: Key Highlights during Q2FY2020
Key Highlights during Q2FY2020 Business Construction Toll • We will continue with our growth strategy focused on BOT and • 7 Projects are under Construction Phase selectively bid TOT and HAM projects • Tolling commenced in Hapur Moradabad BOT project. • Construction Order book of approx Rs. Ahmeda
Slide 10: Consolidated Financial Results
Consolidated Financial Results Amount in Rs Mn For the Period Ended September 2019 (Quarter) September 2018 (Quarter) Particulars Total All Segments Construction Segment BOT Segment Total All Segments Construction Segment BOT Segment Amt % Amt % Amt % Amt % Amt % Amt % Total Income 18,010.74 100.00
Slide 11: Consolidated Financial Results
Consolidated Financial Results Amount in Rs Mn For the Period Ended September 2019 (6 Months) September 2018 (6 Months) Particulars Total All Segments Construction Segment BOT Segment Total All Segments Construction Segment BOT Segment Amt % Amt % Amt % Amt % Amt % Amt % Total Income 36,221.99 100.0
Slide 12: Consolidated Financial Results
Consolidated Financial Results Amount in Rs Mn For the Period Ended September 2019 (Quarter) June 2019 (Quarter) Particulars Total All Segments Construction Segment BOT Segment Total All Segments Construction Segment BOT Segment Amt % Amt % Amt % Amt % Amt % Amt % Total Income 18,010.74 100.00 13,58
Slide 13: Strong Financial Track Record Consolidated Financials
Strong Financial Track Record Consolidated Financials Revenue (INR in Mn) EBITDA (INR in Mn) 31,715 31,329 69,026 27,874 28,480 59,691 58,628 52,551 36,222 16,999 FY 2016 FY 2017 FY 2018 FY2019 H1FY19 FY 2016 FY 2017 FY 2018 FY2019 H1FY19 PAT (INR in Mn) EPS ( in INR) 8,500 7,930 7,154 24.18 22.56 6
Slide 14: Strong Financial Track Record Consolidated Financials
Strong Financial Track Record Consolidated Financials Networth & ROE Net Debt and Net Debt to Equity 80,000 Net Debt DEBT Equity RATIO NETWORTH (LHS) ROE (RHS) 66,909 1,70,000 6.00 70,000 63,151 26% 1,51,498 1,45,072 56,925 1,50,000 1,34,093 1,32,999 5.00 60,000 52,716 21% 1,30,000 48,272 1,06,711 4
Slide 15: IRB Toll Road Portfolio and Performance
IRB Toll Road Portfolio and Performance 15
Slide 16: IRB's Portfolio of Road Assets
IRB’s Portfolio of Road Assets Amount in Rs Mn Portfolio Highlights Competitive Advantage Fully owned 3 BOT & 3 HAM assets aggregating to around 1,735 lane Processes in place to estimate the traffic gained from deep kms, 51% holding in a Private InvIT which has 9 BOT projects of insight/expertis
Slide 17: IRB's Portfolio of Road Assets
IRB’s Portfolio of Road Assets BOT / HAM Portfolio – Km & Lane Km BOT / HAM Portfolio – State wise % (Lane Kms) 12000 Gujarat Year KM Cumulative Km Lane Km Cum Lane Km 15% 10000 8000 Karnataka Uttar Pradesh 10% 18% 6000 4000 Haryana 9% 2000 Tamil Nadu 5% 0 Rajasthan 26% -2000 Maharashtra 17% -4000 1
Slide 18: BOT / HAM Portfolio Summary
BOT / HAM Portfolio Summary Sr. No. Name of BOT Project Client State Project Cost Concession Period Toll Start Date Expected PCOD / ( Rs. In Mn) SSLD* 1. Ahmadabad Vadodara NHAI Gujarat 48,800 25 Years January 1, 2013 - 2. Agra Etawah NHAI Uttar Pradesh 30,440 24 Years August 1, 2016 January 2020 3.
Slide 19: BOT Toll Revenue Comparative
BOT Toll Revenue Comparative Amount in Rs Mn Sr. Name of the Project FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Q2FY 2019 Q2FY 2020 H1FY 2019 H1FY 2020 No. 1 Ahmedabad – Vadodara 1,566 2,187 3,309 3,808 4,293 982 1,098 2,024 2,233 Chittorgarh – Gulabpura BOT 2 (Tolling Commenced wet Nov 11, 2017) - - -
Slide 20: Toll Performance (1/3)
Toll Performance (1/3) INR in Mn 20
Slide 21: Toll Performance (2/3)
Toll Performance (2/3) INR in Mn 21
Slide 22: Toll Performance (3/3)
Toll Performance (3/3) INR in Mn 22
Slide 23: IRB Construction Vertical
IRB Construction Vertical 23
Slide 24: Construction Major
Construction Major Strong Construction Track Record Order Book of Robust Increase in INR 114 Bn on September 30, 2019 Construction Revenue One of the largest BOT portfolio in the country - total length of around c. 11,700 Lane Kms* as BOT operator as on June 30, 2019. Annual Construction Experie
Slide 25: Strong EPC Execution Capabilities Across Entire Value Chain
Strong EPC Execution Capabilities Across Entire Value Chain IRB’s experienced team leverages the latest IT tools that Over c. 10,500 lane km’s of projects executed facilitates in robust project planning and effective deployment 1 of resources that results in cost optimization across the project dura
Slide 26: Infrastructure and Experience in Place to Qualify for Large Bids
Infrastructure and Experience in Place to Qualify for Large Bids on a Standalone Basis Qualified to Robust Extensive Owned Large Skilled Labour Independently Bid for IT Systems in Place Construction Equipment force Large Contracts SAP ERP system in An asset block of ~INR 4,320 Labour force of
Slide 27: Overview of EPC Order Book
Overview of EPC Order Book Order book as on September 30, 2019 Amount Order Book Composition in Rs. Mn EPC/ Construction in Ongoing BOT/ HAM Projects 96,534 O&M in BOT Projects 17,275 Total 113,809 Order Book as of a particular date consists of unbilled revenue from the uncompleted portions of the
Slide 28: EPC Performance
EPC Performance Revenue and Growth PAT & Return Ratio Revenue Growth 8,000 PAT ROCE ROE 60% 50,000 47,098 60% 49% 7,000 48% 45,000 39,734 50% 43% 50% 40,000 35,912 40% 6,000 39% 37% 35,000 31,321 34% 40% 30% 5,000 (Rs. Mn) 19% (%) 30,000 15% 25,519 (Rs. Mn) 11% 20% 4,000 30% 25,000 35% 10% 32% 20,00
Slide 29: Balance Equity Commitment
Balance Equity Commitment Year Amount INR in Rs* FY 2020 17,010 FY 2021 6,890 FY 2022 3,740 Total 27,640 * As on 30th Jun 2019 29
Slide 30: Corporate Overview
Corporate Overview 30
Slide 31: Credentials of IRB
Credentials of IRB DEMONSTRATED TRACK RECORD LARGE ASSET BASE Incorporated in 1998 and now has Pan-India IRB has a large asset base of INR 432 bn as on presence spread across 9 states September 30, 2019 Strong Construction Track record spanning over 4 Fully owned 12 BOT, 3 HAM assets and 7 B
Slide 32: Key Competitive Advantage
Key Competitive Advantage One of the largest BOT Project Portfolio in the Roads IRB InvIT : 15 BOT/HAM and Highways perpetual projects Sector opportunity to comprising 11 recycle capital and tolled, monetize assets and 4 under Key development Competitive Professionally Advantage Strong financial man
Slide 33: Roadmap So Far
Roadmap So Far Awarded 3 projects for Six Definitive Agreements singed with GIC Laning of Kishangarh – Affiliates for investment in 9 BOT Assets Udaipur – Ahmedabad Successful launch of IRB section of NH-8/ 79/ 79A 2019 Infrastructure Developers Significant order wins of Limited IPO INR 9,000 Crs -
Slide 34: The IRB Group
The “IRB” Group IRB’s BOT Road Projects Sr. Length Company Road Name No. in Km 100% 1 ATR Infrastructure Pvt. Ltd. Pune – Nashik BOT NH 50 29.81 12 BOT Projects 2 Thane Ghodbunder Toll Road Pvt. Ltd. Thane Ghodbunder Toll Road BOT 14.90 Roads 100% IRB Ahmedabad Vadodara Super Express Ahmedabad Vadod
Slide 35: Growth Strategy
Growth Strategy Bharatmala Pariyojana: Strong growth envisaged till FY 2022 ~Rs 5tn of total investment for developing 34,800km of roads lined up over the next 4-5 years Of this Rs1.2tn would come from PPP, Rs 2tn from market borrowings and balance Rs ~2tn from Budgetary allocation/ToT/CRF/Toll
Slide 36: Shareholding Pattern
Shareholding Pattern Top 10 Shareholders as on September 30, 2019 Sr. Name % No. Shareholding Pattern as on September 30, 2019 1 LIFE INSURANCE CORPORATION OF INDIA 3.81 2 SBI MAGNUM TAXGAIN SCHEME 3.46 Promoter, Promoter 57.37% Group, 0.17% 3 GOVERNMENT OF SINGAPORE 3.35 ADITYA BIRLA SUN LIFE TRUST
Slide 37: Organization Structure
Organization Structure Mr. Virendra D. Mhaiskar Chairman and Managing Director Board of Directors Mrs. Deepali V. Mhaiskar Mr. Mukesh Gupta Mr. Sudhir Hoshing Executive Director Joint Managing Director Joint Managing Director Mr. Chandrashekhar S. Kaptan Mr. Sunil H. Talati Mr. Sandeep Shah Ms. Heen
Slide 38: Corporate Finance
Corporate Finance Joint Statutory Auditors Mr. Rajkamal R. Bajaj Internal Auditors Suresh Surana & Associates LLP BSR & Co LLP Advisor to the Board Chartered Accountants Chartered Accountants Joint Statutory Auditors Bankers / Lenders of IRB Group Gokhale & Sathe Andhra Bank Canara Bank Chartered Ac
Slide 39: Corporate Recognition
Corporate Recognition This award was won by IRB for being the ideal companies to work for infrastructure sector in EPC Company of India acknowledging its business the Year 2018 operations, quality of its management, concern for Award conferred on employee wellbeing and welfare by the EPC World and f
Slide 40: Corporate Recognition
Corporate Recognition IRB has been conferred on the This award was won by prestigious ‘FinanceAsia the company for having Achievement Award 2017 – employee friendly policies, Best India Deal’ Award by respect for dignity of Hong Kong based employees, open FinanceAsia, a globally communication and hi
Slide 41: Our CSR Initiative
Our CSR Initiative We have replicated same model and have started a We also generously school in the Pathankot district of Punjab, near the contributed to the Amritsar- Pathankot BOT project. Chief Minister’s drought relief fund in Maharashtra. The School building was inaugurated on 27 March 2017.Th
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